Reserves and defense index (Golden Rainbow)

If you move units into the reserves do they still count towards your defense index?

I'm trying to reach level 6 but the crush of supporting this military (and all the damn hospitals) is starting to drag down my financial index.

nope,once they are deactivated they dont count towards your defense index but i cant remember if this is true but i think deactivated weapons still take up 1 third of the troops they used.